I just reviewed the MMT chart and noticed something interesting. The hammer candle that formed just before the bullish move is an almost textbook example of what you should be looking for in your analysis.

For those who don’t know, the hammer candle is that pattern that looks exactly like its name: a hammer. It has a small body at the top and a long tail downward. And the important thing is that it appears after the price has been falling sharply. What’s happening here is that sellers pushed the price down, but in the same move, buyers stepped in and pushed it back up. It’s basically a battle where the buyers won.

Now, not every candle that looks like a hammer is a sign of a bullish reversal. There are conditions it must meet to be reliable. First, it must appear after a downtrend; if not, it’s not the same. Second, that lower tail must be quite long, at least twice the size of the body. The longer it is, the stronger the signal. Third, the body should be small, indicating that sellers lost control.

What many traders forget is that the hammer candle alone doesn’t tell you anything. You need confirmation. You should wait for a strong green candle to close after the hammer to be sure that the bullish reversal is real. If you don’t wait for that confirmation, you’re taking unnecessary risk.

As for volume, it’s critical. If the hammer forms with high volume, the signal is much more reliable. It’s the difference between a change that can last and a false rebound.

With MMT now at $0.11 and up 5.30 in the last 24 hours, it’s worth watching how it develops. If you want to trade this pattern, enter after the next candle confirms, place your stop loss just below the hammer’s tail, and set your profit targets based on resistance levels or using indicators like RSI or volume. But here’s the most important advice: never rely on the hammer candle alone. Combine it with other indicators, look at MACD, volume, everything together. The best traders don’t depend on a single pattern.